One is never too young to learn about finance…
By learning basic money skills, our children can grow into adults who have less stress and stronger marriages. The most effective ways to teach these skills are through an allowance, chores and kids’ budgets
Role playing in children generally helps build a solid financial acumen / Pix: GetPocketBook.com
An allowance is a wonderful teaching tool. When kids learn about money while they’re still at home, they have the freedom to fail in a safe environment. If they fail, their parents are there to help train them. A good age to start an allowance is around 7 years old, depending on the child’s maturity.
Your children should have daily chores they perform for no pay. This is the foundation of a good work ethic that will help them throughout life. The work also needs to be age appropriate. Even 3-year-old children can help set a table, carry dishes to the sink and pick up their toys and clothes. By the time they’re 6, they can make their bed with help and put away clean clothes. Children between 7 and 12 learn how to clean their rooms by themselves, vacuum, dust, take out the rubbish, clean dishes, sweep the floor and water the plants in the garden. Teenagers should know how to do everything I’ve mentioned so far without supervision. They should also know how to work for others and participate in volunteer work.
The concept is simple and fun: You set and pay the budget – but your children keep any money they don’t spend. While eating out, set a fair amount for your children to spend. They may choose to drink water or skip dessert in order to come in under budget and keep the extra money. The next time you go to the movies, zoo or theme parks, set a budget for your child. When the money runs out – it’s gone. They will learn how quickly money can be spent if they are not careful.
This article was published with permission from Focus on the Family Malaysia. For more information, please contact:
Focus on the Family Malaysia celebrates 20 years of helping families thrive in 2017. Find out more at http://family.org.my/20years